Ballard v Revenue & Customs [2013] UKFTT 87 (TC) (31 January 2013)

Ballard v Revenue & Customs [2013] UKFTT 87 (TC) (31 January 2013)

The payment to the appellant was made after his retirement, as he had permanently left employment and decided not to seek further work, and was in connection with past service. Therefore, it constituted a 'relevant benefit' under section 393B(1)(c) ITEPA 2003, taxable under section 394 ITEPA, entitling the appellant...

Source-derived case information.

Citation
[2013] UKFTT 87
Parties
Appellant: George Frederick Ballard; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
31 January 2013
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Employer Financed Retirement Benefits Scheme (furbs), Redundancy Payments, Relevant Benefits, Section 393 B ITEPA 2003, Section 401 ITEPA 2003, Schedule 36 Finance Act 2004
Tax Law Employment Law Income Tax Employer Financed Retirement Benefits Scheme (furbs) Redundancy Payments Relevant Benefits Section 393 B ITEPA 2003 Section 401 ITEPA 2003 +1 more

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Parties

George Frederick Ballard

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether the payment from the employer's profit sharing scheme to the appellant on redundancy was a 'relevant benefit' under section 393B(1)(c) or (d) ITEPA 2003 and thus taxable under section 394 ITEPA 2003, entitling the appellant to transitional relief under Schedule 36 Finance Act 2004, or whether it was taxable under section 401 ITEPA 2003.

Ratio Decidendi

The payment to the appellant was made after his retirement, as he had permanently left employment and decided not to seek further work, and was in connection with past service. Therefore, it constituted a 'relevant benefit' under section 393B(1)(c) ITEPA 2003, taxable under section 394 ITEPA, entitling the appellant to transitional relief under Schedule 36 Finance Act 2004. The existence of redundancy did not preclude the payment from being connected with retirement.

Court Disposition

Appeal allowed

Orders

  • Assessment under section 401 ITEPA 2003 set aside; payment to be treated as a relevant benefit under section 393B(1)(c) ITEPA 2003 and taxed under section 394 ITEPA 2003, with entitlement to transitional relief under Schedule 36 Finance Act 2004.